The Community Infrastructure Levy

Introduction to the Community Infrastructure Levy

Community Infrastructure Levy

The Community Infrastructure Levy (CIL) is a charge on new development. It is based on the size and type of development, is mandatory to pay and non-negotiable.

The funds raised must be used to provide infrastructure required to support new development across the Local Authority area.

CIL is charged on a £’s per square metre (sqm) basis of new (additional) floor space.

It is only payable for certain types of development and in certain locations. Full information regarding the charging rates and zones is contained within the Council's  CIL  Charging Schedule February 2019 (PDF, 7.6 MB)

New  CIL regulations have removed the requirement for Cheshire East to publish a CIL Regulation 123 Infrastructure List. By 31 December 2020 this list will be replaced with an Infrastructure Funding Statement. In the meantime the list, found in the Charging Schedule,  remains a useful indication of infrastructure that may be  CIL funded.

CIL charging rates

The CIL charging rates are based on viability testing and an identified need for infrastructure. The Council's CIL Charging Schedule February 2019 (PDF, 7.6MB) has been subjected to two rounds of public consultation, as well as an independent Examination.

CIL in Cheshire East

The Council’s CIL Charging Schedule February 2019 (PDF, 7.6MB) became operational from 1 March 2019 and applies to relevant planning permissions granted from 1 March 2019 onwards.

A development becomes CIL liable from the date planning permission is granted not when the planning application is submitted.

CIL as a land charge

CIL a legally enforceable levy which is shown as a land charge on the Local Land Charges register.

Applications made before 1 March 2019

CIL  is operational from 1 March 2019

The Council’s  CIL Charging Schedule February 2019 (PDF, 7.6 MB) became operational on 1 March 2019. It applies to relevant planning permissions granted from 1 March 2019 onwards.

A development becomes CIL liable from the date planning permission is granted not when the planning application is submitted.

If you are making a planning application to Cheshire East Borough Council for residential (Class C3) or retail (Class A1-A5) development as set out in the Council’s CIL Charging Schedule February 2019 (PDF, 7.6MB) you will need to include with your application Form 1:  CIL Additional Information. You are advised to read the accompanying Form 1  CIL  Additional Information Guidance Notes.

The information provided on this form will enable the Council to determine whether or not CIL is payable and to calculate the chargeable amount. Failure to supply this information will invalidate your application and may lead to delays.

The person or organisation responsible for paying CIL should also send the Council a 'Form 2: Assumption of Liability' prior to commencement of the development.

The Council recommends the Form 2: Assumption of Liability is submitted with the planning application to reduce the risk of potential surcharges in the future.

Full planning permission granted prior to CIL 

There is no liability if a scheme was granted full planning permission before the 1 March 2019. The subsequent approval of pre-commencement conditions does not trigger a liability to pay CIL.

Outline planning permission granted prior to CIL

The subsequent approval of reserved matters will not trigger a liability to pay CIL if a scheme was granted outline permission prior to 1 March 2019.

Section 73 application to vary or remove conditions 

Approval of a Section 73 (s73) application triggers a liability to pay CIL as it results in a new planning permission.

Where the original planning permission was granted prior to 1 March 2019 but the s73 application is granted following the 1 March 2019, the s73 consent will only trigger CIL for any additional liability it introduces to the development (such as increased floorspace).

Appealed cases

The development will be liable to pay CIL if planning permission is granted on Appeal after 1 March 2019. 

Applications with a Section 106

Formal grant of planning permission cannot be issued until the s106 Agreement has been completed. If this occurs after the 1 March 2019 the development will be liable to pay CIL.

CIL charges, liability and exemptions

The difference between liable and chargeable

A development may be liable for CIL, but not chargeable. This will occur where the development meets the conditions for CIL (liable), but a zero charging rate applies – see CIL  Charging Schedule February 2019 (PDF, 7.6 MB).  A 'Liability Notice' will still be issued, but will state that a zero charge is applied.

Who has the liability to pay  CIL

Landowners are ultimately liable to pay CIL , but anyone involved in a development may assume liability to pay on behalf of the landowner.

If you are making a planning application to Cheshire East Borough Council you will need to submit Form 2: Assumption of Liability.

The information provided on this form will enable the Council to determine who to contact. The Council recommends Form 2: Assumption of Liability is submitted with the planning application to reduce the risk of potential surcharges in the future.

Where no one has assumed liability to pay CIL , liability will automatically default to the landowner(s) and payment becomes due as soon as development commences.

Liability can also default to the landowners where the Council has been unable to recover CIL payment from the party that assumed liability despite making all reasonable efforts.

If you have sold the site but claimed liability

Liability can be transferred to another person before or after a development commences, but this must occur before the final  CIL payment is due. If you want to withdraw or transfer assumed liability you need to complete either Form 3: Withdrawal of Assumption of Liability, or Form 4: Transfer of Assumed Liability.

CIL  liable developments

A development will be liable to pay CIL if both the following apply:

it is of a type (residential Class C3 or retail Class A1-A5) and location for which a chargeable rate has been set in the Council’s CIL  Charging Schedule February 2019 (PDF, 7.6 MB) and

• it is a building into which people normally go.

And the development is either of the following:

• new build of at least 100  sqm gross internal area (GIA) floor space or
• creation of one or more new dwellings, even where the floor space is less than 100 sqm GIA .

A development may be liable to pay if:

• there is a change of use of a building that has been unused for a period of time
• development commenced under ‘general consent’, including permitted development etc.

A development will be exempt and does not pay  CIL if:

• the use, type and location of development has a zero or nil charge (£0/ sq m) as set out in the Council’s CIL Charging Schedule February 2019 (PDF, 7.6MB).
• the development is less than 100 sqm  GIA floor space, unless it is a new dwelling (see above)
• is eligible for ‘self-build’ exemption (applies to houses, flats, residential annexes and residential extensions) and the relevant relief claim forms have been submitted and accepted before development commences

• it is for a structure or building into which people do not normally go, such as pylons, wind turbines or go into only intermittently for inspection and maintenance of fixed plant or machinery 
• there is a change of use with no additional floor space and the former use has been in continuous lawful use for a period of at least six months over the past three years ending on the day the planning permission first permits the development.   CIL  forms still need to be submitted.
• is for social housing and a claim for social housing relief is made (below) and accepted before development commences

• is for, and occupied by, a charity and a claim for charitable relief is made and accepted before development commences;

• it consists of mezzanine floors inserted into an existing building; these are not liable unless they form part of a wider planning permission that seeks to provide other works as well
• the development is a change of use from a single dwelling to two or more separate dwellings with no additional floorspace
• where the levy liability is calculated to be less than £50, the chargeable amount is deemed to be zero so no levy is due.

‘Self-building’ my own house

‘Self-build’ applies to anyone who is building their own home or has commissioned their home from a contractor, house builder or sub-contractor.

‘Self-build’ homes are exempt from CIL , subject to various criteria.

In order to claim  CIL exemption for a self-build dwelling, you must submit Form 7 Self-Build Exemption Claim Part 1, and have it agreed by the Council before commencing development.

Within 6 months of completing the dwelling you must submit Form 7 Self-Build Exemption Claim Part 2, and you must provide additional supporting evidence to confirm that the project is self-build.

You must then own the property and occupy it as your principal residence for a minimum of three years after the development is completed.

If within the first three years you want to sell or rent out the property or stop using it as your main dwelling, you must notify the Council within 14 days of the sale/rent. The CIL chargeable amount which was originally waived will then be payable in full.

Failure to notify the Council that you wish to sell/rent your dwelling will result in enforcement action.

Deductions from demolitions and/or existing buildings

The gross internal floor space of any existing buildings on site that are going to be demolished or reused may be deducted from the calculation of CIL liability, providing that the building has been in continuous lawful use for at least six months over the past three years ending on the day the planning permission first permits development.

It will be for the applicant or their agent to demonstrate lawful use by providing appropriate evidence such as Council Tax records or Business Rates documentation.

Development types

Reserved matters applications

Outline planning permissions will be liable to pay CIL when the development is built. CIL liability is calculated when details of floor space are known at reserved matters stage.

If an outline application includes phasing of development, each phase is treated as a separate development for the purpose of paying CIL. The CIL liability for each phase is then calculated at the reserved matters stage for that phase.

Change of use

A planning application for the change of use of an existing building, or a change of use carried out in accordance with permitted development rights, will generally not be liable to pay CIL unless any of the following apply:

• it involves an extension providing 100  sqm or more of additional floorspace; or
• it involves the creation of a new dwelling even when it is below 100 sqm .

If the existing building has not been in continuous lawful use for a period of at least six months in the three years running up to the day planning permission is granted, or, is deemed to have been abandoned, the development will be liable for CIL and no deductions will be made for existing floorspace.

It will be for the applicant or their agent to demonstrate lawful use by providing appropriate evidence such as Council Tax records or Business Rates documentation.

Building a household extension

Residential extensions with an increase in floor space of less than 100  sqm are considered a ‘minor development’ and not CIL liable provided that:

• the main dwelling is your principal residence and you have a material interest in it (own or have a leasehold of seven or more years)
• the extension enlarges the principal residence and does not comprise an additional dwelling.

Replacement dwellings

Approval of a replacement dwelling application does trigger a liability to pay CIL as it results in a new planning permission.

However, you will be able to deduct the demolished floorspace from the new floorspace, providing it has been in continuous lawful use for six months in the previous three years ending on the day the planning permission first permits development.

Building an annex in a garden

A residential annex within the grounds of your main dwelling with floor space of less than 100  sqm is considered a ‘minor development’ and not CIL liable provided that:

• the main dwelling is your principal residence and you have a material interest in it (own or have a leasehold of seven or more years).

• it is a single residential annex wholly within the curtilage of the main dwelling and comprises of one new dwelling.

To claim this exemption you must submit Form 8: Self Build Residential Annex Exemption claim prior to the commencement of development

Once this has been approved by the Council, you must submit Form 6: Commencement Notice before starting any development on site otherwise surcharges will be applied.

The full CIL  amount will be payable if within three years of completion:

• the main house is used for any purpose other than as a single dwelling or
• the annex is let or
• either the main residence or the annex, are sold separately from the other.

Barn conversions to residential use

A change of use from a barn to residential would not be liable for  CIL if:

• the barn had been in continuous lawful use for a period of six months over the past three years before planning permission is granted and
• the change of use would not result in an increase in size. If the barn had been in continuous lawful use but also resulted in increased floor space, then only the additional floor space would be liable for CIL . The same would apply to offices or other prior uses. Please complete Form 1:  CIL Additional Information.

It will be for the applicant or their agent to demonstrate lawful use by providing appropriate evidence such as Council Tax records or Business Rates documentation.

Sub-division of an existing residential dwellings 

The conversion of a single dwelling house into two or more separate dwellings with no additional floorspace is not liable for CIL .

General consent and permitted development

Development that does not need planning permission by the Local Authority and commenced under ‘general consent’ such as permitted development or prior notification may be liable to pay CIL.

If you intend to develop under ‘general consent’ you must complete Form 5 Notice of Chargeable Development.

The standard criteria for determining whether you will pay  CIL will then apply.

Usable basement and/or loft space

If the basement and/or loft floorspace is usable, and entered regularly, then it will be  CIL liable.

Garages

Garages which are an integral part of planning applications for new houses count as gross internal area and are liable for CIL whether integral to the new house design or detached.

An application for a new garage for an existing house will not normally be liable for  CIL as the floor space will be less than 100 sqm .

No CIL is payable on ‘lean to’ or fully open-sided car ports/canopies.

Calculation of the CIL charge

CIL is calculated by multiplying the rate of the applicable charge as set out in the Council’s  CIL  Charging Schedule February 2019 (PDF, 7.6 MB) by the net increase in gross internal floor area after allowing for any demolition and adjusting for inflation.

The formula for calculating  CIL is contained in the CIL Regulations 2010 (as amended).

An index of inflation is used in the calculations of the  CIL chargeable amount.

Where  CIL liability is calculated to be less than £50, the chargeable amount is deemed to be zero, so no  CIL payment is due.

Notification of payment

The Council will send you a ‘Liability Notice’ including a calculation of the CIL amount payable after planning permission is granted.

It is important to note that exemptions are not automatically applied. If you think you are eligible for an exemption or relief you need to complete the relevant form before you commence development.

Payment of the CIL charge

CIL is payable within 60 days of the commencement of development.

The Council will send you a 'Demand Notice' outlining your CIL charge including how to make your payment.

CIL  payments are not subject to VAT .

Payment in instalments

If your chargeable amount is £50,000 or above then the Council offers a payment instalment option. The instalment thresholds can be found in the  CIL  Charging Schedule February 2019 (PDF, 7.6 MB)

In accordance with the  CIL Regulations 2010 (as amended) the CIL Instalment Policy will not apply in the following circumstances:

• where Form 6: Commencement Notice has not been submitted prior to commencement of the chargeable development;
• where nobody has assumed liability to pay  CIL for the chargeable development on the intended day of commencement;
• where an instalment payment has not been made in full within 30 days of the due date for the instalment payment.

Where the instalment policy does not apply, the chargeable amount must be paid in full within 60 days of the notified or deemed commencement date of the chargeable development or the date of the disqualifying event, whichever is the earliest.

The day on which an instalment payment due will be calculated from the date of commencement of development on site.

Advice before commencing development on site

You are a  CIL liable party if you have received a  CIL 'Liability Notice' following the grant of permission.  CIL liable parties are required to send Form 6: Commencement Notice  to the Council before development commences.

Change of commencement date

The Council will issue a 'Demand Notice' based on your commencement date, so if this changes, you need to let us know. Simply submit a revised Form 6: Commencement Notice with the new date provided.

The Council will acknowledge the date on the latest Commencement Notice.

It is IMPORTANT that you do not start work before you have had acknowledgement of receipt of  Form 6: Commencement Notice from the Council.

Overpayments

The Council will reimburse overpayments, unless the overpayment is less than any reasonable administrative costs which it would incur in making the repayment or, is the result of a land or infrastructure payment.

Failure to pay

CIL  payment is a mandatory and non-negotiable planning charge and there are penalties and surcharges for non-payment. Any instalment options that have been granted are automatically withdrawn.

If  CIL is not paid on time, there are strong enforcement powers relating to recovery of the debt, which are set out by the  CIL Regulations 2010 (as amended).

Appealing a CIL charge

Requesting a review of the CIL chargeable amount

You can ask the Council for a review of the chargeable amount. You need to do this within 28 days from the date on which the 'Liability Notice' (that outlines the chargeable amount) was issued.

The Council will review the calculation and issue a decision within 14 days. This decision cannot be reviewed again.

Appealing the Council's review decision

You can appeal against the Council’s review decision. You will need to submit an appeal to the Valuation Office Agencyappeal to the Valuation Office Agency  within 60 days of the 'Liability Notice' being issued.

Rights of appeal

Appeals can be lodged against some aspects of a  CIL charge.

There is a right of appeal on the following CIL matters:

• Chargeable Amount Appeal (Reg. 114)
• Apportionment of Liability Appeal (Reg. 115)
• Charitable Relief Appeal (Reg. 116)
• Exemption for Residential Annexes Extensions Appeal (Reg. 116A)
• Exemption for self-build housing Appeal (Reg. 116B)
• Surcharges Appeal (Reg. 117)
• Deemed Commencement Appeal (Reg. 118)
• CIL Stop Notice (Reg. 119)

Appeals under CIL Regulations 114, 115, 116, 116A and 116B are administered by the Valuation Office Agency (VOA). Information on how these appeals are administered and how to make an appeal under one of these regulations is located on the Gov.uk website.

Appeals under  CIL Regulations 117, 118 and 119 are administered by the Planning Inspectorate. Information on how these appeals are administered and how to make an appeal under these regulations is located on the Gov.uk websiteGov.uk website.

Infrastructure provision using both  CIL and Section 106

CIL  Regulations introduced on 1 September 2019 allow for Local Planning Authorities to raise s106 monies towards the cost of providing infrastructure which is also being partly funded through  CIL receipts.

Council expenditure of CIL money

The Council is required to prepare a monitoring report to provide details of how much CIL has been received, what it has been spent on and how much is left in reserve. 

Infrastructure Funding Statements

CIL money for Town and Parish Councils

In areas where the  CIL levy operates, Parish Councils will receive a ‘neighbourhood proportion’ of the  CIL money raised within their Parish. This neighbourhood proportion is up to 25% of  CIL receipts in areas with an adopted Neighbourhood Plan and up to 15% (capped at £100 per existing council tax dwelling) in areas without a Neighbourhood Plan.

Town and Parish Councils' expenditure of  CIL money

CIL  revenue must be spent on infrastructure proposals. The Government has provided a wide definition of what can be considered infrastructure.

Outside of this,Town and Parish Councils receiving CIL money will be able to decide how to spend their percentage of money collected. In certain cases the Council may look to work with Towns and Parishes to pool contributions to help fund key infrastructure projects.

Town and Parish Councils are required to produce an annual report outlining their use of their share of CIL receipts, so it is important for Town and Parish Councils to keep clear and transparent records of CIL funding and to have a good understanding of the infrastructure projects their community wishes to be funded.

CIL  forms and guidance notes

Form 1: CIL Additional Information

Form 1: CIL Additional Information Guidance

Form 2: Assumption of Liability

Form 3: Withdrawal of Assumption of Liability

Form 4: Transfer of Assumption of Liability

Form 5: Notice of Chargeable Development

Form 6: Commencement Notice

Form 7: Self Build Exemption Claim Part 1

Form 7: Self Build Exemption Claim Part 2

Form 8: Residential Annex Exemption Claim

Form 9: Residential Extension Exemption Claim

Form 10: Charitable and or Social Housing Relief Claim

Form 11: Exceptional Circumstances Relief Claim

Form 12: Further Charitable and or Social Housing Relief Claim

Form 13: Further Exemption Claim

Form 14: Phase Credit Application

Planning Portal CIL Guidance

Government CIL Guidance

1.Submission of Planning Application (Developer)

When submitting a planning application for residential (Class 3) or retail (Class A1-A5) development you should submit Form 1:  CIL Additional Information to ensure that your  CIL liability is calculated correctly. It is advised that you also read the accompanying Form 1 –  CIL Additional Information guidance.

Failure to submit this form alongside the planning application will mean that possible CIL liabilities will be unable to be calculated and the Council will not validate the planning application until the required information is submitted.

If you intend to develop under ‘general consent’ you must complete Form 5: Notice of Chargeable Development. The standard criteria for determining whether you will pay  CIL will then apply.

2. Assumption of liability (DEVELOPER)

Responsibility to pay CIL runs with the ownership of land on which the liable development will be situated. However, the CIL Regulations recognise that others involved in a development may wish to pay. To allow this, anyone can come forward and assume liability for the payment.

It is the responsibility of the person(s) who will pay CIL to submit Form 2: Assumption of Liability prior to the commencement of the development.

The Council recommends that Form 2 Assumption of Liability is submitted during the planning application process.

Where no one has assumed liability to pay CIL prior to the commencement of the development, the liability will automatically default to the landowners of the relevant land.

The Council has adopted an Instalments Policy (PDF, 7.6MB) which allows payment of CIL liabilities over a longer time period to assist with development cash-flow. Failure by any parties to assume liability prior to commencement will mean the payments become due immediately upon commencement of the development and the instalments policy will not apply.

In addition, a surcharge of £50 may be imposed upon each landowner found to be liable and where the Council has to apportion liability between one or more owners of the land, a further surcharge of £500 per owner may be imposed.

Assumption of liability can be withdrawn by completing and submitting Form 3: Withdrawal of Assumption of Liability,or transferred to another party/parties by completing and submitting Form 4: Transfer of Assumption of Liability.

3. Exemptions (DEVELOPER)

If you feel you may be eligible for exemption, you are required to submit following forms.

• Form 7: Self-Build Exemption Claim Part 1
• Form 8: Residential Annex Exemption Claim
• Form 9: Residential Extension Exemption Claim
• Form 10: Charitable and or Social Housing Relief Claim
• Form 11: Exceptional Circumstances Relief Claim
• Form 12: Further Charitable and or Social Housing Relief Claim
• Form13: Further Exemption Claim
• Form 14: Phase Credit Application

To claim any one of these exemptions you must submit the appropriate form above  prior to the commencement of development.

4. Liability Notice (COUNCIL)

When planning permission is granted for a CIL liable development, the Council will issue a 'Liability Notice' following the grant of planning permission. This 'Liability Notice' will also be registered as a Land Charge.

The 'Liability Notice' will specify how much CIL is to be paid and when it is to be paid.

The 'Liability Notice' is not a demand for payment. It will be sent to the applicant/owner or other parties that have already assumed liability and copied to planning agents working on applicants/owner's behalf.

5. Commencement Notice (DEVELOPER)

Prior to the development commencing, you must provide the Council with Form 6: Commencement Notice stating the date when the development will commence.

Failure to submit a valid 'Commencement Notice' before development commences may result in the Council imposing a surcharge of 20% of the  CIL amount due, up to a maximum of £2,500.

In addition, payments will not be permitted to be made in line with the Instalments Policy and full payment will be payable immediately.

6. Demand Notice (COUNCIL)

The Council will serve a 'Demand Notice' following receipt of Form 6: Commencement Notice  or a decision by the Council to deem that the development has commenced.

The 'Demand Notice' will set out precise details of payment arrangements including instalment options, which will be payable from the date upon which development commences.

Payment will be due in full on the day that the Council believes the development to have commenced if a valid Form 6: Commencement Notice has not been submitted before development commences.

If a development takes place in phases, each phase is a separate chargeable development and payments can be made in line with the Council’s  CIL Instalments Policy.

IMPORTANT NOTE: This advice is given to the best of the Council’s knowledge at the time of writing. ‘Regulation(s)’ refer to the relevant section of the Community Infrastructure Levy (CIL) Regulations 2010 (as amended).

More information

For  CIL queries, email CIL@cheshireeast.gov.uk or call 0300 123 5014.